GenoFocus, Inc. announced private placement of 788,373 registered convertible preferred shares at an issue price of KRW 4,820 for gross proceeds of KRW 3,799,957,860 and series 4th unregistered nonguaranteed private convertible bond for gross proceeds of KRW 23,200,000,000 for total proceeds of KRW 26,999,957,860 on June 28, 2022. The preferred shares are convertible into common shares with conversion ratio: 1:1 starting from July 7, 2023 to July 6, 2032 after one year from the issuance date of the preferred stock. The transaction is expected to close by July 6, 2022.

The transaction has been approved by the board of directors of the company. The company has issued securities through 3rd party allocation increase method. The bond transaction will include participation from JB Mezzanine New Technology Business Investment Fund 1 for KRW 3,000,000,000, Mirae Asset Securities Co.

Ltd. for KRW 1,000,000,000, Samsung Securities Co., Ltd. for KRW 2,700,000,000, KB Securities Co., Ltd., for KRW 800,000,000, NH Investment & Securities Co., Ltd. for KRW 8,500,000,000, Hanwha Investment & Securities Co., Ltd. for KRW 1,500,000,000, Korea Investment & Securities Co., Ltd. for KRW 1,700,000,000, Shinhan Investment Corp. for KRW 1,000,000,000, Hanyang Securities Co. Ltd. for KRW 1,000,000,000, SUSUNG ASSET MANAGEMENT Co., Ltd. for KRW 2,000,000,000.

The bonds carry a surface interest rate of 0% and interest to maturity of 2%. The bonds will mature on July 6, 2027. The bonds can be 100% converted into 4,036,888 shares representing 15.2% stake at a fixed conversion price of KRW 5,747 per share from July 7, 2023 to June 6, 2027.